78R5629 SMH-D

By:  Kuempel                                                      H.B. No. 1821


A BILL TO BE ENTITLED
AN ACT
relating to the immediate qualification of newly acquired land for ad valorem tax appraisal as qualified open-space land. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 23, Tax Code, is amended by adding Section 23.515 to read as follows: Sec. 23.515. IMMEDIATE QUALIFICATION OF CERTAIN LAND FOR APPRAISAL AS QUALIFIED OPEN-SPACE LAND. (a) Notwithstanding Section 23.51, land acquired by the owner of the land on or after June 1, 2002, qualifies for appraisal as qualified open-space land if: (1) the owner of the land files a notice with the chief appraiser before May 1 on a form provided by the appraisal office and prescribed by the comptroller that states that the owner intends to devote the land principally to agricultural use as required by this subchapter; (2) the land was not appraised as qualified open-space land under this subchapter or as land designated for agricultural use under Subchapter C at the time the owner acquired the land; (3) the land was appraised as qualified open-space land under this subchapter or as land designated for agricultural use under Subchapter C on the basis of use by a previous owner in any of the 10 years preceding the year in which the owner submits the notice to the chief appraiser; and (4) the land is not ineligible for appraisal as qualified open-space land under Section 23.56. (b) The form of a notice under Subsection (a)(1) must require the owner to specify the intended agricultural use. Until the land is devoted principally to agricultural use to the degree of intensity generally accepted in the area, the chief appraiser shall: (1) determine the category of the land in accordance with the intended agricultural use as stated in the notice; and (2) determine the net to land as if the land had been used for the intended purpose as stated in the notice for the preceding five years. (c) Land is ineligible for appraisal under this section as qualified open-space land for more than three years unless beginning on January 1 of the third year after the year in which the land is first appraised under this section the land is devoted principally to agricultural use to the degree of intensity generally accepted in the area. If on that date the land is not currently devoted principally to agricultural use to the degree of intensity generally accepted in the area, an additional tax is imposed on the land as provided by Section 23.55 as if the use of the land had changed. (d) If on or before January 1 of the third year after the year in which the land is first appraised under this section the land is devoted principally to agricultural use to the degree of intensity generally accepted in the area, the chief appraiser shall: (1) determine the category of the land in accordance with the actual agricultural use; and (2) determine the net to land as if the land had been used for the actual agricultural use for the preceding five years. (e) The chief appraiser, on the written request of the owner filed at any time during the third year in which the land is appraised under this section as qualified open-space land, shall inspect the land and provide the owner a written evaluation specifying any action required for the land to be considered to be currently devoted principally to agricultural use to the degree of intensity generally accepted in the area. SECTION 2. (a) This Act takes effect January 1, 2004, but only if the constitutional amendment proposed by the 78th Legislature, Regular Session, 2003, to authorize the legislature to provide for the immediate qualification of newly acquired open-space land for ad valorem tax appraisal on the basis of its productive capacity is approved by the voters. If that proposed constitutional amendment is not approved by the voters, this Act has no effect. (b) Section 23.515, Tax Code, as added by this Act, applies only to the appraisal of land for ad valorem tax purposes for a tax year beginning on or after the effective date of this Act.